Melco Crown Entertainment (MPEL) is up 49 cents to $22.50 and one player appears to be cashing in a winning bet on the casino operator. A 10,000-lot of Apr 22 calls trades on MPEL at $1.25 per contract when the market was $1.25 to $1.40. Looks like it covers a position opened on 3/15 when the stock was nearly 10 precent below current levels and 10K were bought for 45 cents each. The next biggest trades in MPEL today might be rolling up in strikes from ITMs to OTMs, as 1500 Apr 21 calls were sold on the stock at $1.85 to buy 2500 Apr 23 calls for 78 cents each. Jul 22 and 23 calls on MPEL are also seeing interest today. Total volume is 21K calls and only 600 puts. No news to explain the relative strength in the stock and increaed options activity. Shares are notching record highs.
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Frederic Ruffy is a well-known trader, writer, and strategist who has spent years educating investors and creating intelligent, insightful, unbiased market observations that are frequently cited by the Wall Street Journal and other financial publications. As senior analyst, Fred provides frequent and regular notes and daily updates for activity of interest.